ZDB.TO vs. ZSB.TO
Compare and contrast key facts about BMO Discount Bond (ZDB.TO) and BMO Short-Term Bond Index ETF (ZSB.TO).
ZDB.TO and ZSB.TO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ZDB.TO is a passively managed fund by BMO that tracks the performance of the FTSE Canada Universe Discount Bond Index. It was launched on Feb 10, 2014. ZSB.TO is a passively managed fund by BMO that tracks the performance of the FTSE Canada Short Term Overall Bond Index. It was launched on Mar 1, 2018. Both ZDB.TO and ZSB.TO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Performance
ZDB.TO vs. ZSB.TO - Performance Comparison
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ZDB.TO vs. ZSB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
ZDB.TO BMO Discount Bond | 0.17% | 2.03% | 4.26% | 6.69% | -11.99% | -2.77% | 9.50% | 6.74% | 2.34% |
ZSB.TO BMO Short-Term Bond Index ETF | 0.26% | 3.77% | 5.55% | 5.05% | -4.08% | -1.20% | 5.13% | 2.95% | 1.69% |
Returns By Period
In the year-to-date period, ZDB.TO achieves a 0.17% return, which is significantly lower than ZSB.TO's 0.26% return.
ZDB.TO
- 1D
- 0.33%
- 1M
- -1.94%
- YTD
- 0.17%
- 6M
- -0.46%
- 1Y
- 0.41%
- 3Y*
- 3.25%
- 5Y*
- 0.50%
- 10Y*
- 1.58%
ZSB.TO
- 1D
- 0.23%
- 1M
- -0.90%
- YTD
- 0.26%
- 6M
- 0.64%
- 1Y
- 2.40%
- 3Y*
- 4.25%
- 5Y*
- 1.91%
- 10Y*
- —
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ZDB.TO vs. ZSB.TO - Expense Ratio Comparison
Both ZDB.TO and ZSB.TO have an expense ratio of 0.10%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Return for Risk
ZDB.TO vs. ZSB.TO — Risk / Return Rank
ZDB.TO
ZSB.TO
ZDB.TO vs. ZSB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BMO Discount Bond (ZDB.TO) and BMO Short-Term Bond Index ETF (ZSB.TO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| ZDB.TO | ZSB.TO | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 0.09 | 1.26 | -1.17 |
Sortino ratioReturn per unit of downside risk | 0.15 | 1.72 | -1.57 |
Omega ratioGain probability vs. loss probability | 1.02 | 1.25 | -0.23 |
Calmar ratioReturn relative to maximum drawdown | 0.23 | 1.68 | -1.44 |
Martin ratioReturn relative to average drawdown | 0.47 | 6.82 | -6.35 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ZDB.TO | ZSB.TO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.09 | 1.26 | -1.17 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.08 | 0.71 | -0.63 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.25 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.37 | 0.89 | -0.51 |
Correlation
The correlation between ZDB.TO and ZSB.TO is 0.51, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Dividends
ZDB.TO vs. ZSB.TO - Dividend Comparison
ZDB.TO's dividend yield for the trailing twelve months is around 2.13%, less than ZSB.TO's 3.20% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ZDB.TO BMO Discount Bond | 2.13% | 2.28% | 2.38% | 2.42% | 2.52% | 2.16% | 2.06% | 2.20% | 2.07% | 2.06% | 1.95% | 1.99% |
ZSB.TO BMO Short-Term Bond Index ETF | 3.20% | 3.16% | 2.91% | 2.54% | 2.60% | 2.43% | 2.34% | 2.40% | 2.42% | 0.00% | 0.00% | 0.00% |
Drawdowns
ZDB.TO vs. ZSB.TO - Drawdown Comparison
The maximum ZDB.TO drawdown since its inception was -18.09%, which is greater than ZSB.TO's maximum drawdown of -7.49%. Use the drawdown chart below to compare losses from any high point for ZDB.TO and ZSB.TO.
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Drawdown Indicators
| ZDB.TO | ZSB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.09% | -7.49% | -10.60% |
Max Drawdown (1Y)Largest decline over 1 year | -2.87% | -1.46% | -1.41% |
Max Drawdown (5Y)Largest decline over 5 years | -16.25% | -7.12% | -9.13% |
Max Drawdown (10Y)Largest decline over 10 years | -18.09% | — | — |
Current DrawdownCurrent decline from peak | -2.76% | -0.90% | -1.86% |
Average DrawdownAverage peak-to-trough decline | -4.24% | -1.52% | -2.72% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.43% | 0.36% | +1.07% |
Volatility
ZDB.TO vs. ZSB.TO - Volatility Comparison
BMO Discount Bond (ZDB.TO) has a higher volatility of 1.95% compared to BMO Short-Term Bond Index ETF (ZSB.TO) at 0.96%. This indicates that ZDB.TO's price experiences larger fluctuations and is considered to be riskier than ZSB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZDB.TO | ZSB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.95% | 0.96% | +0.99% |
Volatility (6M)Calculated over the trailing 6-month period | 3.06% | 1.38% | +1.68% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.64% | 1.91% | +2.73% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.50% | 2.72% | +3.78% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.39% | 2.63% | +3.76% |